Payment Protection Insurance was invented to help people with Loans, Credit Cards, Finance Agreements and other credit transactions that if ever found themselves in the position where they couldn't keep up with their payments PPI could be used.

These insurances are intended to be used and consumed if there is a default in payment of the purchaser due to some events that are unforeseeable like if the purchaser become very ill and can not work, Lost his job, the purchaser faced accident and even death. But most of these insurance results from the fraudulent actions of credit providers that is why problems about mis sold PPI arise.

Mis sold PPI happens if the purchaser or buyer of the PPI does not know that he is actually buying the PPI without his approval or if the buyer is forced by the broker or other financial institutions to buy the product or else their loans or other credit transactions would not be granted. Mis sold PPI is about 20 million policies sold and gracious ten percent of that number is resolved. Compensation on the claims is pretty hard the price of the insurance is about 16 to 25 percent of the total amount of the debt or borrowings which too big for a worker who has an average salary or wage. Profits of credit and other financial firms rocket high because of these products.

There are institutions that help purchasers do the right thing in pursuit of their claims for compensation. These institutions guide those purchasers that did not know that they have mis sold PPI. They advice the purchasers and help them do the proper process in their quest for compensation mis sold PPI claims.

If the purchasers claim are successful and the credit and financial institutions notified the purchaser. The successful PPI claim will now be compensated. The purchaser will receive the lump sum amount of the policy plus charges and damages filed against them including the interest earned by the policy if the purchaser had already paid all the debt. If not the purchaser will receive the amount in accordance to the months or years paid on a monthly or annual basis. And for the next payment month the debt will be decreased by the corresponding interest rate for the policy earned. 

Early detection and prevention to these kinds of problems would lead to a better life without the problem of mis sold PPI get in your way.

Leave a Reply.